PC Industry Showing Signs Of Life

PC Industry Showing Signs Of Life

Don't look now, but it seems as if PC sales are on the up and up. While GPU makers, PC builders and basically every other related company in the industry suffered through the first two quarters as the recession loomed, Dell's latest figures are showing a sign of light in the darkness.

Out of nowhere, the Texas-based outfit reported that its profits stooped less than it had expected during the May through July period, and just so we're clear, we did say profit. Any profit is good these days, and the company's shares shot up around 6% following the news. Dell wasn't alone in the party scene, as HP and Intel also suggested via their newest quarterly reports that the sector was ready for a comeback.



The overall health of the PC industry looks to be improving, with bargain prices, back-to-school and brisk netbook sales to thank. What's funny is that this is all happening despite the fact that Windows 7 will be out here in a few months. You'd think folks needing a new PC would just hold off for Win7, but considering that Microsoft is allowing its partners to offer free or discounted Win7 upgrades, that may be helping sales out. Another amazing figure was that some 80% of Dell's sales come from sales to businesses, government agencies and other "institutions," and if corporate America is buying, you things are looking up.
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Mobility revenue was $US3.9 billion, a 21 percent yearly drop

Desktop PC revenue was $US3.3 billion, a 33 percent yearly drop

Overall net income of $US472 million for the quarter that ended on July 31, a 23 percent drop from last fiscal year's second quarter.

 

Somebody please explain what is good about this. Shares earned $0.24 instead of the estimated $0.23 so now they must be doing awesome. Fact is they did a little less worse than expected. Which is still far from good or on the up and up. Everywhere has been reporting this as such great news and I am not really seeing the good in it.

 

News:
Another amazing figure was that some 80% ofDell's sales come from sales to businesses, government agencies andother "institutions," and if corporate America is buying, you thingsare looking up.

And Circuit City remodeled half there stores the year before they went under.

I don't know that people are worried about Windows 7 since most don't even know about it. I haven't seen any marketing about it like they did with Vista.

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